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Intergenerational Accounting and Saving in Australia

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  • JOHN ABLETT

Abstract

This paper generalizes the Kotlikqff type generational accounting notion of generational imbalance to include net private intergenerational transfers. The Kotlikqff identities are seen to be a subset of the overall intergenerational accounting identities. Simulations for Australia using the intergenerational accounting framework reveal a significant intergenerational imbalance to the detriment of future generations. This suggests current savings rates in Australia are inadequate to permit intergenerational balance.

Suggested Citation

  • John Ablett, 1996. "Intergenerational Accounting and Saving in Australia," The Economic Record, The Economic Society of Australia, vol. 72(218), pages 236-245, September.
    • Handle: RePEc:bla:ecorec:v:72:y:1996:i:218:p:236-245
    DOI: 10.1111/j.1475-4932.1996.tb00956.x
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    References listed on IDEAS

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    1. Modigliani, Franco, 1988. "The Role of Intergenerational Transfers and Life Cycle Saving in the Accumulation of Wealth," Journal of Economic Perspectives, American Economic Association, vol. 2(2), pages 15-40, Spring.
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    8. John Ablett, 1996. "Generational Accounting—An Australian Perspective," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(1), pages 91-105, March.
    9. Alan J. Auerbach & Jagadeesh Gokhale & Laurence J. Kotlikoff, 1994. "Generational Accounting: A Meaningful Way to Evaluate Fiscal Policy," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 73-94, Winter.
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